Technical Assistance for Banking & Financial Services - Chile

The goal of this project is to assist the FMC to strengthen its capacity to supervise and resolve problem financial institutions, which is critical to developing and maintaining a fair, safe, and stable financial sector that benefits and protects financial sector participants, maintains public confidence in the financial system and supports inclusive economic growth.

Project components will focus on: 1) enhancing the FMC's resolution planning and prevention capabilities under the current legal framework through the introduction of resolvability evaluations and recovery planning; 2) reforming the legal framework with the introduction of a new resolution law for failing institutions in line with the Financial Stability Board's "Key Attributes of Effective Resolution Regimes for Financial Institutions"; and 3) implementing an effective resolution regulatory framework that allows for the orderly resolution of failed financial institutions.